No Worst-Case Scenario
Catherine Ashton © European Communities, 2009
I posted a couple of months back (see “Broken Promises”) about the failure of the G-20 nations to live up to their promises of resisting protectionism during the recession. Now comes confirmation from Brussels, via the New York Times. Catherine Ashton, the European Union’s trade commissioner, issued a report on Friday that concludes that the EU has felt the adverse consequences of more than 220 new or proposed protectionist measures since October 2008 (admittedly, most from outside the G-20). Mercifully, Ms. Ashton concludes that the “protectionist worst-case scenario has been avoided.” I’m relieved, but not relaxed. The recession may be lifting in some countries, but the seductive promises of protectionism abound.
It is generally trade disputes between the major trading blocs that grab the headlines, so I am pleased to see that the United States is low on the list. In terms of number of actions, says the report, the biggest perpetrators against the European Union are Russia and Argentina. Indonesia, Belarus, Mexico, Vietnam, Brazil, Egypt and Paraguay were also cited for joining the protectionist bandwagon, though they are given credit for being more “selective” than Russia or Argentina.
For you true policy wonks out there, the full 72-page report is here.
